| REGISTERED NUMBER: |
| Family Finance Limited |
| Financial Statements for the Year Ended 31 December 2025 |
| REGISTERED NUMBER: |
| Family Finance Limited |
| Financial Statements for the Year Ended 31 December 2025 |
| Family Finance Limited (Registered number: 00525612) |
| Contents of the Financial Statements |
| for the Year Ended 31 December 2025 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 |
| Notes to the Financial Statements | 3 |
| Family Finance Limited |
| Company Information |
| for the Year Ended 31 December 2025 |
| Directors: |
| Registered office: |
| Registered number: |
| Auditors: |
| 5th Floor Hodge House |
| 114-116 St Mary Street |
| Cardiff |
| CF10 1DY |
| Family Finance Limited (Registered number: 00525612) |
| Balance Sheet |
| 31 December 2025 |
| 2025 | 2024 |
| Notes | £ | £ |
| Fixed assets |
| Intangible assets | 4 |
| Tangible assets | 5 |
| Investments | 6 |
| Current assets |
| Debtors: amounts falling due within one year | 7 |
| Debtors: amounts falling due after more than one year |
7 |
| Cash at bank and in hand |
| Creditors |
| Amounts falling due within one year | 8 | ( |
) | ( |
) |
| Net current assets |
| Total assets less current liabilities |
| Creditors |
| Amounts falling due after more than one year |
9 |
( |
) |
( |
) |
| Net assets |
| Capital and reserves |
| Called up share capital |
| Share premium |
| Capital redemption reserve |
| Retained earnings |
| Shareholders' funds |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Family Finance Limited (Registered number: 00525612) |
| Notes to the Financial Statements |
| for the Year Ended 31 December 2025 |
| 1. | Statutory information |
| Family Finance Limited is a |
| 2. | Accounting policies |
| Basis of preparing the financial statements |
| Going concern |
| At 31 December 2025, the company had net assets of £12,345,421 (2024: £12,865,604) and net current assets (excluding debtors due after more than one year) of £750,241. (2024: £2,163,512) and reported a profit before tax for the year then ended of £1,510,625 (2024: £1,709,956). The financial statements have been prepared on a going concern basis, which the directors consider to be appropriate for the following reasons. |
| Similar to recent prior financial periods, throughout the 2025 financial year the business continued to be impacted by the Cost-of-Living crisis. Despite a fall in the headline inflation rate over the financial period, customers' financial positions have not yet recovered against what were the highest levels of inflation in recent history. The business has however, always aimed to provide high levels of forbearance to its customers through positive engagement. As such the business' collections have not been significantly impacted and remain strong, with the large majority of its customers continuing to meet their repayment obligations. |
| As reported in the prior year financial statements, the company ceased offering unregulated Bridging loans as this was to be offered by Seeder Bridging Loans (SBL), a company within the same group. As such, the Bridging loan book has wound down throughout the year, shrinking by £3.79m (40.5%) compared to the previous year. The majority of this fall has however been picked up by new lending in SBL. This decision was the primary driver in the overall fall in the loan book throughout the year, which fell by £5.11m (9.3%) throughout the year. |
| The Rent-to-Own book is driven by the brokering conduct by its subsidiary, Family Vision Limited. During the financial period, the directors applied to the Financial Conduct Authority (FCA) to remove these brokering permissions, with the intention of hiving up its trade and assets into Family Finance Limited. On 7 January 2026, the FCA provided the relevant approvals for this to take place and as at the date of this report, the business is preparing for this restructuring. Family Vision Limited is expected to become a dormant entity going forward, with the trading name being adopted and the trade continuing directly through the company, thus removing the regulatory requirements of brokering as the company will instead sell direct to consumers under a Hire Purchase agreement. The directors expect that this restructuring will streamline the group from an operational, legal and regulatory perspective. |
| The motor finance industry has been under a significant amount of scrutiny during the year, with the Financial Conduct Authority (FCA) issuing a Motor finance consumer redress consultation (CP25/27) in October 2025. On 30 March 2026, the final version of the scheme was issued (PSD26/3). The company has never operated a Discretionary Commission Arrangement (DCA), nor an exclusive or tied dealer arrangement. The scheme however includes a threshold deemed "high" levels of commission, which the company has paid commission levels in excess of. However, in cases of High Commission, the scheme includes a "No Better Deal" (NBD) rebuttal test, being: |
| "It is more likely than not, that the consumer would not, in relation to the same transaction, have been able to obtain a lower APR from another lender, the broker had arrangements with at the relevant time". |
| The directors are confident that it can provide a credible case to demonstrate that, on the balance of probabilities to meet the rebuttal test, the broker did not forgo other options that would have been better for the consumer because of a High Commission Arrangement. As at the date of this report, the company is working with their legal advisors to develop a case that demonstrates, with more certainty than the threshold of the rebuttal test requires, that on the basis of broader evidence the business meets the NBD rebuttal test, thus eliminating the requirement to pay redress. |
| Family Finance Limited (Registered number: 00525612) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2025 |
| Between the difficult trading conditions and the negative spotlight on the motor finance industry, there has been a drop in footfall seen at motor dealerships, which as a consequence reduces the opportunities to the company to lend. This has resulted in the Motor HP loan book shrinking by £1.26m (3.9%) year-on-year. |
| The directors have prepared a cashflow forecast for at least 12 months from the date of approval of these financial statements. These forecasts take account of severe, but plausible, downside scenarios of the potential impact of the macroeconomic stresses. |
| Under these scenarios, lending is expected to grow modestly in the Rent-to-Own and Unsecured areas of the business, whilst motors will be dependent on the final outcome of the FCA's redress scheme, as this may result in competitors leaving the market or unable to lend for a period of time. Collection levels are expected to be in line with the value of the gross loan book as was the case in prior financial periods. With continued pressures on household incomes expected for the majority of the year ahead however, the company will continue to offer its high levels of forbearance to customers and as such, the potential impacts of this have been reflected in the relevant downside scenarios. |
| The forecasts prepared, as well as the assessment of ongoing funding requirements, indicate that the company will have sufficient funds, through its cash resources, available facilities and ongoing profitable trading, to meet its liabilities as they fall due for that period, whilst also maintaining its planned levels of new business lending. |
| The company retains significant headroom on the block discount loan facilities. The facilities are renewed on an annual basis and whilst the directors acknowledge that there can be no certainty that the facilities will extend beyond their renewal dates, at the date of approval of these financial statements, they have no reason to believe they will not do so. Indeed, should any facility expire, each drawdown will continue to be repaid over the predetermined schedule period which are aligned to the collection of the loans and advances which they are secured against. |
| On the basis of their assessment as discussed above, the directors are confident that the group and company will have sufficient funds to continue to pay its liabilities as they fall due for at least 12 months from the date of the approval of the financial statements, and therefore continue to adopt the going concern basis in preparing the financial statements. |
| Preparation of consolidated financial statements |
| The financial statements contain information about Family Finance Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Phillips Family Investment Limited. |
| Critical accounting judgements and key sources of estimation uncertainty |
| Key sources of estimation uncertainty |
| Amounts receivable under hire purchase and instalment credit agreements are stated after deduction of the sum which in the opinion of the directors is required as a provision for bad and doubtful debts, taking account of age, cash movements and security value. |
| The provision uses a standard calculation, which provides a fixed percentage of arrears based on the amount of instalments overdue. Management will also manually make specific provisions to cover known risks. |
| Family Finance Limited (Registered number: 00525612) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2025 |
| 2. | Accounting policies - continued |
| Turnover |
| Turnover represents interest earned on loans and advances and amounts (excluding value added tax) derived from the provision of goods and services to customers during the year. |
| Income arising on hire purchase agreements and credit instalment sales is credited to the profit and loss each year. |
| The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial instrument (or a shorter period where appropriate) to the net carrying value of the financial asset or financial liability. The calculation takes into account all contractual terms of the financial instrument. |
| Income relating to the sale of goods is recognised when substantially all of the risks and rewards of ownership have passed to the customer, generally being at the point of sale. |
| Income relating to maintenance of goods sold is treated as deferred income and released to the profit and loss account over the period of the maintenance obligation. |
| Intangible assets |
| Intangible assets represent software development costs acquired by the Company and are stated at cost less accumulated amortisation and less accumulated impairment losses. Amortisation is charged to the profit and loss account one straight-line basis over the estimated useful economic life of the asset being 3 to 5 years. |
| Tangible fixed assets |
| Motor vehicles | - |
| Computer equipment | - |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| 3. | Employees and directors |
| The average number of employees during the year was |
| Family Finance Limited (Registered number: 00525612) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2025 |
| 4. | Intangible fixed assets |
| Computer |
| software |
| £ |
| Cost |
| At 1 January 2025 |
| Additions |
| At 31 December 2025 |
| Amortisation |
| At 1 January 2025 |
| Amortisation for year |
| At 31 December 2025 |
| Net book value |
| At 31 December 2025 |
| At 31 December 2024 |
| 5. | Tangible fixed assets |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| Cost |
| At 1 January 2025 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 December 2025 |
| Depreciation |
| At 1 January 2025 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 December 2025 |
| Net book value |
| At 31 December 2025 |
| At 31 December 2024 |
| 6. | Fixed asset investments |
| Shares in |
| group |
| undertaking |
| £ |
| Cost |
| At 1 January 2025 |
| and 31 December 2025 |
| Net book value |
| At 31 December 2025 |
| At 31 December 2024 |
| Family Finance Limited (Registered number: 00525612) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2025 |
| 7. | Debtors |
| 2025 | 2024 |
| £ | £ |
| Amounts falling due within one year: |
| Loans and advances |
| Amounts owed by group undertakings |
| Other debtors |
| VAT |
| Deferred tax asset |
| Prepayments |
| Amounts falling due after more than one year: |
| Loans and advances |
| Aggregate amounts |
| 8. | Creditors: amounts falling due within one year |
| 2025 | 2024 |
| £ | £ |
| Bank loans and overdrafts |
| Hire purchase contracts (see note 10) |
| Trade creditors |
| Amounts owed to group undertakings |
| Tax |
| Social security and other taxes |
| Other creditors |
| Directors' current accounts | - | 1,728,967 |
| Accrued expenses |
| 9. | Creditors: amounts falling due after more than one year |
| 2025 | 2024 |
| £ | £ |
| Bank loans - 1-5 years |
| Hire purchase contracts (see note 10) |
| 10. | Leasing agreements |
| Minimum lease payments fall due as follows: |
| Hire purchase |
| contracts |
| 2025 | 2024 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Family Finance Limited (Registered number: 00525612) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2025 |
| 10. | Leasing agreements - continued |
| Non-cancellable |
| operating leases |
| 2025 | 2024 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| 11. | Secured debts |
| The bank account has the following guarantees attached to it: |
| 1) Debenture on the banks standard form dated 24/06/2002 |
| 2) Debenture on the banks standard form dated 07/04/1997 |
| 3) A charge containing fixed and floating charges has been applied on 15/08/2024 by Aldremore Bank PLC over Asset Finance Agreement and Bridging Agreements |
| 12. | Deferred tax |
| £ |
| Balance at 1 January 2025 | ( |
) |
| Credit to Income Statement during year | ( |
) |
| Balance at 31 December 2025 | ( |
) |
| 13. | Disclosure under Section 444(5B) of the Companies Act 2006 |
| The Report of the Auditors was unqualified. |
| for and on behalf of |
| 14. | Directors' advances, credits and guarantees |
| The following advances and credits to directors subsisted during the years ended 31 December 2025 and 31 December 2024: |
| 2025 | 2024 |
| £ | £ |
| D G Phillips |
| Balance outstanding at start of year | - | 700,000 |
| Amounts advanced | - | 292,590 |
| Amounts repaid | - | (992,590 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | - | - |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | ( |
) |
| During the financial year, the balance on the Directors’ Loan Account was transferred to the parent company. As a result, the liability previously held within the company has been settled through an intercompany transaction, and the corresponding balance is now reflected within the parent company’s accounts. |
| The balance transferred was a balance owed to Mr J R Phillips of £532,968. |
| Family Finance Limited (Registered number: 00525612) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2025 |
| 15. | Post balance sheet events |
| During the financial period, the directors of the company's subsidiary, Family Vision Limited (FVL), applied to the Financial Conduct Authority (FCA) to remove the brokering permissions that it holds, with the intention of hiving up the trade and assets of FVL into Family Finance Limited (FFL). On 7 January 2026, the FCA provided the relevant approvals for this to take place and on 31 March 2026, the hive up transaction was executed. FVL is expected to become a dormant entity going forward, following the settlement of its outstanding liabilities. The trading name "Family Vision" has been adopted by FFL and the trade continues through this company, thus removing the regulatory requirements of brokering. The directors expect that this restructure will streamline the group from an operational, legal and regulatory perspective. |
| 16. | Ultimate controlling party |
| The controlling party is Phillips Family Investments Limited. |
| The ultimate controlling party is |